VinFast to Manufacture Electric Scooters and Buses in India The automaker has signed a memorandum of understanding (MoU) with the Government of Tamil Nadu to invest USD 500 million to expand its production facility in Thoothukudi.
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Vietnamese electric vehicle manufacturer VinFast has confirmed that it will produce electric scooters and electric buses in India as part of its expanding presence in the country. The company plans to manufacture these products locally in order to offer them at competitive prices and strengthen its position in the growing Indian electric mobility market.
The automaker has signed a memorandum of understanding (MoU) with the Government of Tamil Nadu to invest USD 500 million to expand its production facility in Thoothukudi. The announcement marks the beginning of the second phase of VinFast's USD 2 billion commitment to the state. The company had already allocated USD 500 million in the first phase of its investment plan.
VinFast will acquire nearly 500 acres of land next to its existing 400 acre facility in the SIPCOT Industrial Park. The additional land will be used to set up specialised workshops and dedicated manufacturing lines for the upcoming electric bus and electric scooter ranges. The company has not yet disclosed the production capacity it aims to achieve in these new segments.
Pham Sanh Chau, Vingroup Asia chief executive officer and VinFast Asia chief executive officer, said, "The proposed expansion of the Tamil Nadu plant will enable us to broaden our product lineup in India, from electric cars to electric buses and e scooters, allowing us to meet a wider range of customer needs."
He added that the initiative is expected to create employment opportunities and strengthen localisation efforts while building capabilities within the regional workforce. Chau said, "VinFast believes that Tamil Nadu will continue to serve as a strategic hub in our global expansion journey and will play an important role in supporting India's green mobility goals in the years ahead."
VinFast began production in India in August 2025 and has outlined a rapid expansion plan for the coming year. Local reports have indicated that the company aims to introduce electric buses by August 2026 and electric two wheelers within the same year.
The automaker currently assembles the VF 6 and VF 7 sport utility vehicles from complete knock down kits at its Thoothukudi factory. The plant has a capacity of 50,000 units a year, and VinFast is working to increase it to 150,000 units. Future launches include the Limo Green multipurpose vehicle in early 2026 and the VF 3 and VF 5 models later in the year.
